print
11.05.2006
uaBBB+ credit rating assigned to upcoming bond issue of Caravan, Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBBB+ credit rating to the scheduled registered interest-bearing bond issue (A series) by Caravan, Ltd (Kyiv) in the amount of UAH 30 million with a circulation period of 3 years. The companys main activity is retail trade of food and non-food products.
Factors supporting the credit rating's level:
- The Issuer is a member of Caravan group and organizes retail trade in the largest trade and entertainment center in Ukraine Caravan, which makes its efficiency showings higher than average market ones: amount of an average cash receipt is UAH 85.4, annual revenue of one square meter of trading area is about UAH 40 thousand;
- Net income from sales by Caravan, Ltd grew 70% to UAH 285.1 million in 2005 without expansion of trading areas, while growth rates of retail turnover of goods in Kyiv were 123% over the same period;
- Poor saturation of regional markets with trade centers of TEC Caravan format and high growth rates of peoples incomes in big industrial cities of Eastern region of Ukraine should favor the development strategy of the Issuers regional network;
- Volume of the scheduled bond issue is 10.5% of total net income from sales by Caravan, Ltd in 2005.
Factors restricting the credit rating's level:
- Risks of redistribution of money flows inside Caravan company group without taking into consideration the Issuers interests;
- The Issuers unprofitable operation in 2003-2004; the companys financial independence coefficient was never high than 0.1 over the whole period of its operation;
- Growing competition in retail market of Ukraine.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
